View full sizeChuck Crow, The Plain DealerFront of the Stanley Block Building at 2121 Ontario St. in Cleveland, Ohio.

CLEVELAND, Ohio -- Businessman Tony George hopes to lease and redevelop the Stanley Block building as a restaurant, conference center and meeting space.

The chairman of the George Group, a cluster of businesses based in Lakewood, recently signed a letter of intent to lease the Stanley Block from Macron Investment Co., according to court testimony and a document filed Thursday.

And he's willing to front the cash for repairs and chase historic-preservation tax credits for complete restoration, a potential $2.5 million project.

George spoke Thursday during a hearing in Cuyahoga County Common Pleas Court. His appearance was an attempt by Macron, which owns the Stanley Block, to show that the company has a plan -- and that the court need not appoint a receiver to manage the corporation, protect its shareholders and decide whether to raze or restore its only asset, the four-story building at 2121 Ontario St. in downtown Cleveland.

Judge John P. O'Donnell is weighing a receivership request from 2115-2121 Ontario Building LLC, a company affiliated with casino developer Rock Ohio Caesars LLC. The casino group bought shares in Macron last year, throwing an already disorganized company into potential deadlock. Rock Ohio Caesars built a welcome center and valet-parking garage around the Stanley Block, cattycorner from the new Horseshoe Casino Cleveland.

The group's attorney is pushing for demolition of the Stanley Block, which he described Thursday as a "collapsing, crumbling building," worth far less than the land beneath it. The other Macron shareholders -- members of the Maloof and Anter families -- claim they want to preserve the building, one of Cleveland's oldest.

But Macron is nearly broke, and the Maloof and Anter shareholders say the divided company can't get a loan for the restoration project.

George signed his letter of intent, a non-binding agreement, with members of the Maloof family. In court, the restaurateur and real estate investor said he's ready to start renovations immediately, if the Macron shareholders can get along and support his effort to secure tax credits. Or he's willing to buy the company, or the building.

"I'd buy Rock Gaming out for what they paid for it," George told the judge. "I'd give the Maloofs what they invested in it. And I could write a check for that today."

Richard Goddard, an attorney for 2115-2121 Ontario Building LLC, questioned the validity of the letter of intent. It's unclear whether Macron can enter into a lease, amid the shareholder dispute and litigation that raises questions about the company's operations and record-keeping.

A court-appointed receiver could decide to sign a lease with George or another tenant. But a receiver also might decide that the best approach for Macron's shareholders is to demolish the Stanley Block and develop or sell the land. That's what the casino group is betting on.

"The value is really in the land, not in the redevelopment of the property," said Goddard, who said his client is willing to pay the estimated $1 million cost of knocking down the building.

The casino group claims its shares in Macron are losing value. Goddard said the company is insolvent, with roughly $2,700 in its bank account. The company has not paid $105,000 in fines levied by Cleveland Housing Court Judge Raymond Pianka in building-code cases last year. And a contractor filed a $334,142 lien on the Stanley Block in January.

Last week, Pianka found Macron in contempt for failing to file reports and make repairs at the property. He imposed daily fines of $15,000 on the company until it provides the records and efficiently pursues renovations at the Stanley Block. David Eisler, the company's attorney, said he plans to ask Pianka to reconsider.

Without an appraisal, it's impossible to tell how much the Stanley Block is worth. The Cuyahoga County Fiscal Officer places the market value of the property at $421,500 -- with just $56,000 of that being the building.

O'Donnell has not decided whether to appoint a receiver to run Macron. But it's possible that the future of the Stanley Block, whether it's razed, remade by George or saved by someone else, could be wrested from the hands of the warring shareholders.

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